EBusiness Opportunity for HK Logistics Ltd. Essay

Company Service and Product worth Logistics Ltd (ELL) is a privately ca substance abuseed logistics go with specialising in the deli accreditedly of Business-to-business items deep down byout Europe. The connection was founded in 1992 to leave behind an in effect(p) logistics military service particularly targeted to manufacturing firms from their network of profferrs. The emphasis for the ships smart set at this initial stage was zip up and efficient service as a end of regional efficiency. At start up, the orders headquarters was in Hong Kong with a regional distri exception centre in Shanghai, China. indicately the company has 5 major(ip) distribution centres each(prenominal) over the world, however our out border to be a brawny player in the Asiatic market is still core to our operations..Our w arho intents provided storage and logistics donjon for our clients which at inception were closelyly Chinese companies but consent ext extirpateed throughout t he world. Our W arehouse service sustain proceed to be a vital aspect of our business as we support clients who do non wish to own their facilities, a tr stop over which had occasion popular in the late 1980s. This aspect of the business still represents a signifi flowerpott part of ELLs revenue. Apart from our warehousing services, ELL is involved in contract logistics services, freight concern, and logistics consulting. However, the company lengthy to the offering logistics support for end products and distribution to our clients retail and wholesale outlets which increase our freight handling requiring untested skills and expertise.Size and Scope of Influence The Companys refreshing last is to be the premier logistics company serving manufacturing companies spheric all in ally with a strong base in Asia. ELLs new goal was to take the company from being seen as a logistics company primarily in the Asian region to being a orbiculate player leveraging on the use of engin eering to do this. The companys employee figures have similarly increased from 2,300 to over 4000 within the last 2 years cod to our efforts in expansion.Revenue, Ambition, Strengths and Weaknesses HKs profit last year was $5.7M after value as the year marked the beginning of huge investments in applied science as a result of the need for the company to be more(prenominal) than responsive and to implement major e-commerce and parcel tracking initiatives.The companys strength in Europe offered it huge gets and market growth in the region despite stiff challenge from global operators. It however became limpid that the company needs to expand globally in mold to benefits its corporate clientele most of whose operations take freights to former(a) continents. This need was truly important to a fault as we extended our business to the shipment of end products form our clients to various distributors creating a new challenge.Companys locating and goals regarding e-commerce L ast year the company transformed its website into a portal as first steps towards new integrated e-commerce initiatives. The company is straight beneficial aware that this is the way to go to see that it benefits its growing customers and stay competitive. The major challenge for ELL is to coordinate its operations and promise the integrating of its services throughout the business from collection to rescue stages. To do this, it was all important(p) to provide current time visibility of our operations and parcel progress to our clients to ensure efficient focal point. dent 2 Internet Business Scope The e-commerce Project As antecedently explained morality Logistics Ltd has evolved a new strategy to position it as a global player through the authorisation opportunities that e-commerce can provide. This is important because we believe that it will also resurrect our strength to collaborate effectually with otherwisewise global players who will wish to tap into the As ian market. In plication with this our warehousing solutions have been enhanced with four new distribution centres to let up our growing client base flexibility and wider range of locations closer to their manufacturing plants.This is guaranteed to optimise cost savings, lower liabilities, increased speed-to-market and enhanced freighting and shipment services. Our fulfilment services are aimed at providing specialised services including postponement, inspection, returns and salvage to our clients who require these value-adding services. The increase importance of Asian companies in global manufacturing supply filament has present ELL in a strategic position and we aim to optimise our advantage.Our Present Position Our use of technology before this excogitate was not outstanding as with most Asian companies. Like every standard company, we fighted a central database of our operations without the ability to track goods in real time. study was shared with customers on stock levels on a hebdomadally basis and updating of data was done manually from education accredited from our customers. Standard EDI transactions embroild advance ship reveal and notice of shipment and payments by our customers was done through electronic funds transfer.This was not good enough and it became obvious that we were loosing customers who wanted to k in a flash the condition of their shipments in real time which we presently could not do. It was therefore clear that we would be limited in providing good customer service and could loose most of our valued clients. So this e-commerce discombobulate was fundamentally important to move EEL to the coterminous level in terms of our global strategyGoal background knowledge and Corporate Communication The importance of the internet project was clear to management as it was important in the growth of the company and new global initiatives for expansion. However, the huge financial commitments required meant that it had to be effectively explained to shareholders for approval. To do this, an inside team headed by the CIO was set up to articulate the goals and cost of the project. They were also given the responsibility for communicating this to all the stakeholders and drawing up an carrying out plan.New Opportunities/Necessary Changes It was clear that to move forward, e-business was crucial to helping us get real time randomness necessary for our operational efficiency. The writ of execution of e-business was mainly requiren by the growing demands on our business. This process started with the company streamlining its operations with the intention of transforming itself from a traditional bricks and mortar logistics company to a company using e-commerce and technology strategically to enhance service part and delivery. It also had become necessary to extend beyond Hong Kong to serve companies in Europe and unify States and these regions were increasingly sourcing for products from Asia which w as our primeval market.Secondly, technological development in the logistics empyrean had advanced with the possibility of clients being able to ascertain real time locations and condition of their shipment. New software applications executing meant that we had to expand our IT subsection and employ more cater. It also meant that we had to downsize in some areas of the company that increasingly became ir germane(predicate). In terms of strategy, the e-commerce project aimed at extending our frontiers giving us the ability to compete on a global scale hence our new side to be a global player. The projects orthodontic braces on focus was deepend Value through Channel desegregation We required the integration of our distribution network with our warehousing and transportation management agreements to drive overall freight cost down by consolidating orders for multiple customers. This integration of systems also provides customers with immediate access to development with red uced order cps times and transit times insuring that materials are in the right ass at the right time. automatise Services through Integrated engineering Our transportation management service was developed to reduce freight costs and increase on time deliveries. Transportation management services complicate carrier selection, pricing negotiations, real time shipment posture (via website) and automated intercourse. Automated communication includesexceptions surgical process management and exception reportageclaims resolution insurance coverage naval division 3 Knowing the Enemy (3)One critical grammatical constituent for our internet project as already expressed is the need to attend up with global competition and ensure that we offer our customers what they require. It is clear that our biggest ardor in terms of competition is Exel, a global company originating from the United States. Exel is a global leader in supply range management with significant interests in the Mid dle East and China. The companys time-honoured has attracted global companies like Sun Microsystems, Ericsson, Motorola, Hitachi, and Nokia as some of the companies that it services. In a way, our service offerings are similar as we target manufacturing companies as our client base which is similar to what Exel does. Just over three years ago, the company faced a similar detail as what Excellent Logistics now facesthere was need to provide an integrated global supply chemical chain management systems as the company had clients in every continent and serviced their clients from delivering components for manufacturing to the distribution of end products. In order to achieve this, the company employ the service of Agilisys to design a web-establish supply chain integrator system that aimed at offering their corporate clients an integrated view of inventory and delivery status of goods at every point in time. In the project for Exel, the company listed the deliverables expected fro m Agilisys as followsIn verbalizeigent interface design to enable re-use of purchase order and inventory dataIntegration of disparate systems for clients and third-party logistics suppliers business leader to track stock through the entire supply chainIn-depth methodological analysis to work on the look and feel of the siteMulti-tier messaging architecture, decline and middleware technologies to enable integration with incompatible systemsNo doubt, the result of this project was that Exel became more able to respond to their challenges of expansion globally. This project no doubt represent Exel as a technologically driven company responsive to providing huge services to its customers and increased its market share all over the world. We can surely say, its recent partnership with global giants DHL is a statement of the status Exel has gained over the years as a result of its e-business adoption.Our focus has been explained in section 2 is similar to that of Exel while we desire t o ensure that we conduct to play a strong role in Asia. The figure to a lower place shows the critical areas the e-business project was meant to addressFigure 1 E-business project concepts place as crucial by collaboration team.Excellence Logistics Ltd. is clearly fire in using this as a relevant pattern in our quest to implement our own e-business initiative. We are conscious of this and have extended our scope with our e-business consultants to include the followingInvestigation of the use of RFD technology in logistics as we intend to be one of the first companies to implement this.Integration with third party suppliers like DHL and UPS for extended services and direct deliveries to our clients customers. This is very inbred in the delivery of end products from our warehouses.It is clear that we are essentially a Business-to-Business logistics company with particular interest in manufacturing firms particularly in the technology sector. Our target customers are likely to hav e the following characteristicsBe Manufacturing Companies usually in the Technology sector.With significant partnerships and interest in Asian market.Companies requiring specialised logistics services including warehouse facilities.We shall be extremely concentrate to scale down on our target sector and to be the best in our sector and will look for opportunities to better understand our customers and their needs. The approach is to ensure full empowerment and information sharing with our customers and partners with constant feedback on achievable areas of improvement.Section Four eBusiness schema Project Procedure To achieve our goals as a company, it is essential to articulate clearly our e-business strategy as a company. beginning form A cross-functional team headed by the Chief Information policeman (CIO) looks at our needs and in conjunction with our consultants, produce a example for the project.Planning manikin This involved communication with management and evolution of a time-table with which the project will be guided and also explaining the process to our partners, staff and clients to understand our aims with the project. An extended collaboration team including representatives from operations, finance, IT, customer service, and human resources plane section was inaugurated at this stage to help with the process to ensure company-wide participation.Execution Phase This involves the stage by stage implementation of the project including necessary skills facts of life and workshops.Control Phase The objective during the control phase is to closely reminder the performance measures agreed to by the collaboration team. Any service exceptions or performance measures not met will be reviewed with the CIO who was the head of the project and account to management on a monthly basis.Process Improvement Phase This involved the analysis of the project and improvements on initial design ground on any shortcomings found. The objective of this phase is to discover the required service levels as originally agreed for the project. These initiatives will enable us to capitalize on past successes and allow us to take our supply chain to the next level of innovation, to effectively monitor operational capabilities, improve performance levels, measure cost accurately, and develop world-class processes.Supply Chain Strategy Our Supply Chain Management Strategy is to develop and manage a preferred supply base that enhances the success of our customers and their long term competitiveness. It is now clear that efficient supply chain management clearly impacts on the profitability of our clients. We shall therefore employ the followingJust-in-time supply management.Developing and maintaining long-run client relationships.Strong organizational and process integration to leverage on technology.Reduction in cycle times and reduction of total costs. orbiculate Collaboration and outsourcing to reduce overhead costs.Legal Framework Legal issu es with the e-business project include the followingPrivacy concerns for individual customers who want to ensure that their data, communication and information is unsex.Global trade issues and legislations affecting the industry.Intellectual Property cherishion. protective covering of payment transactions.Marketing Strategy We aim to maximise our new e-business strategy and initiative be deploying online promotions, search engine strategies, co-marketing branding with customers and partners, new media advertisements and global brand development.Section Five Public ImageOrganisational Goal Our primary goal is to be a global logistics provider and the premier logistics company providing specialized services to manufacturing firms with a strong base in Asia. We have however clearly defined four essential areas that this project is foc apply on with supporting performance measures Improve management efficiency realistic meetings and collaborations. Reduced logistics cost Increased Tim e Deliveries Reports and event management certification and trust issues digest secure login for partners, customers and employees. Controlling access levels. Better client Service Provide Online Enquiry Online viewing and real-time tracking of parcels. Provide remote consultation services Online registration and bill payment big Participation and Future Opportunities For other logistics companies and potential Partners. Identifying consolidation opportunities or possible global mergers. Supports RFID technology.Our foundation as an efficient and reliable logistics provider is build on the hard work and integrity in our operations which we have emphasized from the inception of the company. We would continue to utilize this while we aim at being responsive to new technology needs in order to improve our efficiency and keep the trust of our clients. With regards to software capability, it was important that it was customized to meet our specific needs with our focus on a paperless system base on flexibility and reduction in freight costs and increased delivery times.Security and Privacy Issues The following issues form the framework for our constitution on hostage and privacy issuesData Protection This is an important police gaining global attention with regional legislations particularly in the US and European commission. Our goal will be to ensure that all private information is obtained by obtained by fair and lawful means relevant to the purposes for which they are to be used should be protected with reasonable security measures to prevent unauthorized access, destruction or modification.Financial Transactions It is essential that all payments and transfer of money is done securely and that is in line with the companys goal of transparency and fairness.Intellectual Property Trademark and mental property of our customers will be adequately protected.E-mail and communication We would use secured e-mail communication and create effective firewalls to protect both succeeding(prenominal) and outgoing e-mail. It is essential that communication is sent to the right department and our collaboration software ensures this with the encryption of sensitive communication.Risk Assessment Clearly the major risk issues is Security and Technical faults . Our desire however is to turn this to a strategic marketing tool by ensuring emphasis on secure transactions. To mitigate these risks, we have done the followingWe have engaged IBM, a global player and foremost e-business consulting company.Ensuring that Technology used is relevant, secure and waxy to support hereafter business changes.We have put offline software capabilities and procedures to weed with possible downtimes and internet failures. We are aware of lose of revenues by companies due to technical faults and will preempt this.Developed efficient service levels and procedures for by the way intervention.Communication Strategy We would effectively communicate and educate our cust omers, suppliers and partners as to the effective use of our systems for maximum benefit and ensure that responsibility is taken for our technology. We would emphasise the convenience, efficiency and the interactive experience that our e-commerce initiative provides.Section Six Information Strategy (2)Information Gathering As important as technology is, information is the basis and information is essential to make the business successful. As part of the initial process, the company has looked at what information is necessary to ensure we operate efficiently and provide the quality of service that we desire. It is therefore essential that information is carefully designed and assess should be monitored to ensure that it is used only for official purposes. Privacy is very important to also protect confidential information as some of our clients are competitors to each other to ensure that we operate ethically. It is also necessary to ensure proper reporting and performance measuremen t to enhance the future(a) direction of this project. The figure to a lower place shows the major enterprise units and some sample information needs.Figure 2 Our Value ChainAs a result of our position in the supply chain business, it is important that we ensure efficient use of information between the interacting organisations and units as shown in the figure above. A typical situation is to get an order from our customers manufacturing locations to our central warehouse where the order is confirmed based on inventory availability. Inventory is also automatically connected to our supplier chains who supply components once the set reorder level is reached.This akin process occurs with the product retailers and individual customers who order our customer products. The essence is to maintain a just-in-time supply chain that maximises the efficiency of the value chain and reduces cost associated with poor forecast. Whenever a product or component is shipped based on an order, an invo ice is automatically issued which is settled through online transactions and transfers. On the other hand, the supply chain system links with the companys relevant departments particularly the accounts and logistics supports units.Problems with Information FlowDealing with different companies in the chain presents bottlenecks that hinder communication.Privacy Constraints and Data Protection differences across countries.Strategy to enhance Information flow efficiencyWork with companies, suppliers and partners who understand the value of efficient Technology and accept our strategy.Build a Customer Service team to handle InformationKeep communications from management to front duty staff open at all stages of the project and with implementation.Make Excellence Customer Service the basis of our e-business project.Give ownership to everyone so that all employees can be part of improving the project and contributing to future changes.Section Seven Future Operation and Development RFID In tegration In the long term, our business strategy is to maximize the opportunities that are available for global partnerships with other logistics providers in areas where we are not too strong, while we provide similar support in our primary area. One major benefit of the project is its suitability and implementation of RFID which is gaining global attention particularly for the logistics sector.We are conscious that this is a trend that will be the standard for the future and with this project have positioned ourselves for its implementation in a years time. What makes the RFID technology interesting and important? Whereas barcodes only identify the product, RFID tags can tell what the product is, where it has been, its expiry date and any other information required for the product. This makes information retrieval and access automatic and complete on its own. It will produce adequate information about when and where merchandise is manufactured, picked, packed and shipped so that data can be stored, transmitted in real-time and shared with warehouse management, inventory management, financial and other enterprise systems.another(prenominal) benefit of RFIDs is that, unlike barcodes, RFID tags can be read automatically by electronic readers. Imagine a hand truck carrying a container full of widgets entering a shipping terminal in China. If the container is equipped with an RFID tag, and the terminal has an RFID sensing element network, that containers whereabouts can be automatically sent to Prime Technologies without the truck ever slowing down. It has the potential to add a substantial centre of visibility into the extended supply chain. The only issue in its implementation is the cost and the fact that it will still take a couple of years before it becomes a global standard.This project has increased the potential of possible collaboration through the use of web services through which data is shared and transmitted to enhance communication between comp anies. Our positioning to enhance our future strategic goals will be in line with the followingOur initial strategy aimed at expanding globally will result in the implementation of our e-business project that is aimed at ensuring that we can track goods in transit and provide our customers with real-time information.The implementation of RFID to help efficient tracking of parcels and increase our efficiency at warehouses.The four major groups that our company has includeCustomers that we provide complete logistics solutions for including shipping, transportation to and from factory.Customers that we provide warehousing services alone.Customers that we provide warehousing and shipping of components and materials to their factories but who handle their own distribution.Customers who handle their own warehousing but leave transportation and logistics to us.It is clear that our e-business project is essential to all these groups but will be more critical to the companies that use our op erations completely. We are certain that this will enhance our ability to effectively increase our customer base in all these sectors.Strategy to Enhance Future ValueWhile e-business benefits may be difficult to measure, we will keep working on performance measurement of the project to ensure that value is generated and sustained.That we utilise simple technology that will be considerably scalable and flexible to enhance future possible changes using open-source technology as much as possible.Sensitive to cultural and lyric barriers in the use of technology.Employee participation, training and motivation to make everyone involved in project development.The project must continue to improve convenience, efficiency and security for all users and stakeholders.ReferencesKendra Bonnett, An IBM guide to doing business on the internet. Mcgraw Hill. 2000.Charles Trepper, E-commerce Strategies. Microsoft Press. 2000.Charles Trepper (2000) E-Commerce Strategies. Published by Microsoft Press. 10 11,http//www.cio.com/research/scm/edit/012202_scm.htmlscm_emerging (assessed February 18)http//www.forfas.ie/publications/ebus_ict_leg02/021029_ebusiness_ict_leg_pressrelease_s.pdf (assessed February 21)http//www.usherproject.org.uk/support/scenarios/legal.pdf